On July 31, 2009, the Oklahoma State Banking Department closed First State Bank of Altus, Altus, Oklahoma. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Herring Bank, Amarillo, Texas, acquired all liabilities and substantially all assets, except private label securities and a portion of the loan portfolio from the FDIC as Receiver for First State Bank of Altus. Any claims by equity holders were not acquired.

The following answers are provided for the most commonly asked questions by customers
of a failed bank. The
total balance in your account(s) with First State Bank of Altus, Altus, Oklahoma
has been transferred to Herring Bank, Amarillo, Texas and will be available for
transactions during regular business hours at the former office of First State
Bank of Altus.

You may continue to use your same checks, ATM cards and debit cards until Herring Bank notifies you otherwise.

All Direct Deposits, including Social Security checks, will continue
as usual.

Account(s):
What about my account with First State Bank of Altus?

If you had an account with First State Bank of Altus, you now have an account with Herring Bank. All deposit accounts, which include checking, savings, money market, CDs and retirements accounts, have been transferred to Herring Bank; regardless of the dollar amount. No one lost any money on deposit in First State Bank of Altus.

Customers of both banks should continue to use their existing branches until Herring Bank can fully integrate the deposit records of First State Bank of Altus.

To forewarn you of any scams, please be advised that you will not receive any e-mail notifications from the FDIC, the Receiver, or Herring Bank asking you to claim/unlock/un-suspend your account or to provide any private information. Please be watchful for and resist any scams to obtain information from you from individuals or entities purporting to act on behalf of First State Bank of Altus.

ATM/debit card and/or Billpay:
What about my ATM/debit card and/or bill paying with First State Bank of Altus?

Brokered Deposits:
I am a deposit broker or have brokered deposits. What do I do?

As an All-Deposit Transfer transaction, the total of all deposit accounts have been assumed by Herring Bank.

Be advised, however, that from and after the date of closing, Herring Bank will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, Herring Bank shall permit depositors, including brokered depositors, impacted by reduced rates to withdraw their deposits without penalty for early withdrawal.

If you are a customer who has a First State Bank of Altus deposit through a broker, you must contact your broker with any questions.

Direct Deposits - Government Deposits:
What will happen to my direct deposits?

Existing Deposits at Herring Bank:
I already have other deposit accounts with the new bank. When combined
with balances at this bank, my deposits exceed $250,000. Are all
funds insured?

The accounts transferred to Herring Bank will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from First State Bank of Altus are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Interest Rates, Early Withdrawal Penalty:
Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?

All interest on insured deposits accrued through July 31, 2009, will be paid at your same rate. Herring Bank will review rates and notify you if interest rates will change.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering a new deposit agreement can be done by either renewing your CD or making a deposit to or a withdrawal from your account.

Loans/mortgages:
What about my loan or mortgage with First State Bank of Altus?

Herring Bank assumed most of the loans held by First State Bank of Altus. For the loans acquired by Herring Bank, your payment amounts and due dates are the same. If your payment(s) are deducted from your account, they will continue as in the past. You should continue to make your checks payable to First State Bank of Altus and send your payments to the same address.

The FDIC will contact those borrowers whose loans were not passed along to Herring Bank.

Safe Deposit Boxes:
How can I claim the contents of my safe deposit box?

Shareholders:
What about my shares of stock?

All shares of First State Bank of Altus were owned by its holding company,
FSB Bancorp Inc., Altus, OK. The holding company was not
included in the closing of the bank or the resulting receivership. If
you are a shareholder of FSB Bancorp Inc., please do not contact
or file a claim
with the Receiver. You may contact FSB Bancorp, Inc. directly for
information as follows:

Transaction Types:
Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.